CONTENTS 5 Data is the best foundation for sustainable decisions 6 About BIRN Group 8 Data, data and more data 10 Green investments that make sense 15 BIRN Group and the UN global goals 16 How we will work with Science Based Targets 22 Data collection has been demanding, but is worth the effort 25 BIRN Group’s carbon emissions in 2022 26 Reducing energy consumption of smelting furnaces 28 AI technology optimises BIRN’s energy consumption 30 Investment in oxyfuel heating systems reduces energy consumption in iron foundry 31 More energy-friendly lighting at BIRN Group 33 Lighter cast iron components...

DATA IS THE BEST FOUNDATION FOR SUSTAINABLE DECISIONS 2023 has been another eventful year for BIRN Group with lots of climate, environment, social and governance initiatives – all important steps on the path to becoming an even more sustainable group. The focal point has been data, which will help us target our efforts in the areas of Environment (E), Social (S) and Governance (G) even more precisely. This sustainability report is therefore also structured around these areas. Our ability to use, understand and conduct business based on data is crucial to us being a highly professional and competitive...

6 Sustainability report 2023 Introduction 7 largest iron foundry groups. The group com- nies in Denmark, Germany, Sweden and Italy. panies specialise in different types of casting, processing and distribution of cast iron solutions. BIRN A/S BIRN was founded in 1896 in Holstebro, where its headquarters are still located. BIRN is the parent company of BIRN Group, and is a turn-Holstebro, Denmark key supplier of everything related to design, casting, precision machin BIRN Germany GmbH BIRN Germany was founded in 1975, with the aim of getting closer to German users of transmission elements. This...

Data, data and more data 2023 has really been the year of data at the BIRN Group. We have spent almost the entire year collecting data from our companies and incorporating it into our new digital reporting system. The reporting system has been developed by the ReFlow eco-tech company, which also assisted with the collection of data from all our companies. The system gives us a good overview of energy and resource consumption, carbon emissions and much more across all six companies. The comprehensive data foundation will help us find the places in our production with the greatest potential for...

Green investments that make sense An active, green investment strategy based on a data-driven approach. This is essence of the work on BIRN Group’s sustainability strategy. We have come a long way in recent years, having gained valuable knowledge about our opportunities to advance ESG. It also provides a good foundation for shrewd, green investments that will enable us to use green energy to replace fossil energy sources. In 2023, BIRN in Holstebro installed an electric hardening furnace in the company’s surface treatment plant and two large plants for heat recovery from extraction systems, and...

12 Sustainability report 2023 Introduction 13 12 Sustainability report 2023 Introduction 13 priority to. This will enable us to begin setting ambitious and realistic targets for our ESG work in 2024. Until then, we have defined a number of concrete aims and fleshed them out with the actions that are either already underway or will be initiated in order to meet these aims. The BIRN Group bases its efforts on the following broad ESG aims: Our sustainability aims At the BIRN Group, we are constantly working to become more sustainable in relation to the environment and climate, social responsibility...

Sustainability report 2023 Introduction 15 At the BIRN Group, the UN’s Sustainable Development Goals serve as the basis for our work with sustainability. The Global Goals were adopted in 2015 and represent the most ambitious global development agenda ever seen. The goals set the course towards 2030 for more sustainable development - for both people and the planet. The BIRN Group has chosen to focus on four of the 17 Global Goals - in relation to energy, jobs, consumption, production and climate - which our work either directly or indirectly supports. RESPONSIBLE CONSUMPTION AND PRODUCTION The...

How will we work with Science Based Targets Science Based Targets (SBT) sets concrete targets for companies’ carbon footprint reduction in all three scopes. The targets are all in line with what is required to meet the Paris Agreement objective of limiting global warming to less than two degrees compared to pre-industrial levels. The objectives will thus be based on scientific data and models, which is why the BIRN Group wants to commit to SBT. Science Based Targets in brief SBT (Science Based Targets) is a non-governmental organisation (NGO) that promotes corporate climate action in partnership...

18 Sustainability report 2023 Introduction 19 Environmental and climate factors in a company, e.g. carbon emissions, energy consumption, recycling and waste sorting. Social factors in a com- Governance factors in pany, e.g. well-being, a company, e.g. man- absence due to illness, agement principles, data accidents at work and security, supplier selec- diversity. tion and gender diversity ESG - Environment, Social & Governance The BIRN Group will be covered by the new EU Corporate Sustainability Reporting Directive from 2026. However, we are already documenting and mapping how we work with sustainability...

At BIRN Group, we want to show responsibility by minimising our negative impact on the environment. We are therefore working proactively to reduce our energy consumption and increase our recycling of natural resources and surplus heat, and we are investigating how we can contribute positively to our surroundings. This is described in more detail in this section.

Data collection has been demanding, but is worth the effort “We want to be able to help our customers meet the EU’s sustainability reporting requirements, while also gaining insight into which areas in our own production have the greatest potential for reducing our environmental impact. Data collection supports both these goals.” Claus Beier, Group CEO, BIRN Group In 2023, we achieved our goal of establishing comparable and in many places automated data collection across the entire BIRN Group. While this has been a demanding process, it has been worth it. Data-driven process optimisation is a...